Good day ladies and gentlemen and welcome to the First Quarter 2013 InvenSense Inc., Earnings Conference Call. My name is Fabiola and I will be your operator for today. (Operator Instructions). I would now like to turn the conference over to your host for today Mr. Alan Krock, Chief Financial Officer. Please proceed.

Alan Krock

Thank you operator. Good afternoon and welcome to all, I need to begin our call with a forward-looking statements, statements by management in this conference call that are not historical are forward-looking statements as determined to find in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include projects of revenue gross margins and other financial metrics that maybe discussed during this conference call and potential for the continued technology, leadership of InvenSense devices and consumer electronic markets including comments on our current potential future market share.

Investors are cautioned that all forward-looking statements during this call involve risk and uncertainties that can cause actual results to differ from those currently anticipated due to a number of factors including without limitation, current global economic conditions, the business environment facing our customers or their belief concerning this environment, customer inventory levels, verticals, market mix, market acceptance of the Company’s products, production and introduction schedule, the rate of growth in sales, the company’s products.

Changes in the mix of our business between various motion processing solutions as well as changes in economic conditions and other risk factors that the document filed by the company with the Securities and Exchange Commission from time to time.

Copies of InvenSense SECs filings are posted on the Company’s website and are available from the Company without charge. Forward-looking statements are made as of this date of this conference call and the company does not undertake any obligations to update its forward-looking statements to reflect future events or circumstances. With that introduction I will turn the call over now to Steve Nasiri, our Founder, Chairman and Chief Executive Officer.

Steve Nasiri

Thank you Alan and good afternoon to everyone. Welcome to our fiscal 2013 first quarter call. We had a solid quarter and we were able to deliver at the mid-point of our stated guidance of $38 million to $40 million with revenue of $39.2 million.

Our earnings per share also met our guidance of $0.09 per share, our revenue grew 19% sequentially in the June quarter with the smart phone and tablets leading our growth and representing 75% of total revenue. Also ask we discussed in our last call, a sequential revenue growth opportunity in the June quarter was somewhat tampered by constraints in the availability of certain leading age components from other chip providers into the handset and tablet phase related to tight capacity up 28 nanometer technology.

Looking ahead to reminder of fiscal 2013 we believe this component shortages are already accounted for in customers forecast provided to us and we do not foresee any significant additional surprises in this regard.

Looking at the motion interface market based on all of our ongoing customer engagement, we are very pleased by the rapid rate of adoption of this functionality into many high end smart phones and we are now seeing this adoption growing into mid-range smartphones driven by some of the leading device makers. We are also pleased with markets adoption of our integrated six-axis devices in most new designs just coming to the market such as Samsung Galaxy S3 LTE smartphone.

This is further validation of market acceptance of our technology driven by top key manufacturers. We are also very delighted by the standardization of motion interface functionality by leading Android tablet makers. As an example our six-axis motion tracking solution is in the recently released Google Nexus 7 tablet in addition to a number of new Android tablet is scheduled to hit the market soon. We believe that the tablet market will represent the growth opportunity for us for remainder of our fiscal year.

We continue to be encouraged with the fast paced of adoption of motion interface functionality by many other leading consumer electronic device makers. We are also starting to see motion interface functionality being adopted in many games and other mobile application.

For instance, the latest version of Android operating system called Jelly Bean has incorporated motion into its 3D street view. Today customers consider (inaudible) our consumption and performance as key selection criteria in addition to price and quality. And we see evidence of this trend in the fast transition of mark to market from stand-alone motion sensors to adoption of our intelligent integrated six-axis motion tracking devices.

You are expecting an increase in volume shipment of our six-axis devices of over 100% in Q2 compared to Q1. We also see continuing the trend in our gaming and Smart TV market with customers expecting to meet our initial expectations for our current fiscal year. Because of superior performance of our product we continue to retain 100% market share at key accounts.

We believe technology leads in providing complete motion tracking solutions and our reputation for high performance and high quality product are resulting in an increased number of new opportunities that would lead to positive growth and increased revenue for investments in second half of the fiscal year 2013 and beyond.

As a result we believe we will enjoy increased market share going out of this year and into next fiscal year. Alan will provide a more detailed breakdown on the business outlook later in this call but I would like to provide a quick revenue outlook for our September quarter.

We expect our revenue in the second fiscal quarter ending September historically and seasonally a strong quarter for us to be in the range of $53 million to $57 million or a 35% to 45% sequential quarterly growth.

Demonstrating the leverage in our business model for the June quarter we delivered net income of $7.7 million and increase of 30% sequentially from 5.9 million in prior quarter. June quarter operating margins came at 24.6% assuming our September quarter revenue target and proper execution because of the leverage in our business model our operating income for September quarter can reflect nearly 90% sequential growth.

In our previous calls we talked about opportunities for optical image stabilization in digital still cameras and camera phone modules. We are seeing continuing trend and strong design activities around our product offerings for this market segment. We see this market as a potential high growth opportunity for second half of fiscal year 2013 and beyond. Finally, we see a strong interest in our product in new market we are now pursuing, such as industrial and variable sensor on medical, health, fitness applications.

We intend to lead this market with our integrated multi-axis product software solutions and reference designs. We see this market segments as potential future growth and diversification opportunity. I will now turn the call over to Alan for more detail on fiscal Q1 financial result. We will then provide an update on our product and other development and second quarter fiscal 2015 financial outlook.

Alan Krock

Thank you Steve. Please note that all financial results will be discussed on a generally accepted accounting principal or GAAP basis. For the first quarter of fiscal 2013 net revenue was $39.2 million up 19% from the fourth fiscal quarter of 2013. Our market lift for the first quarter of fiscal ’13 were smartphones and tablet 75% of sales, gaming 13%, all other segments 12%. For fiscal Q1, our 10% customers were Samsung, Nintendo, HTC and Quanta which is a contract manufacturer for a number of consumer electronics companies.

We also saw continued strength in the China market which represented a bit more than 10% of total fiscal Q1 sales. Seasonally the March quarter is historically been the lowest revenue opportunity for us been the quarter following strong calendar year end holiday related sales.

Our fiscal Q1 ending in June, and also be somewhat seasonally slower because of the same reason as our markets transition to the peak quarters in September and December. Our fiscal Q1 gaming related percentage of sales and generally consisted with expectations for this quarter at 13% of sales.

Gross margin for the first fiscal quarter of 20.13 was 55% consistent with our target operating model, returning to operating expenses our total operating expenses were $11.9 million for the quarter versus 11.4 million for the immediately prior quarter.

R&D expenses were 5.7 million or 14.4% of revenue for fiscal Q1 as compared to 5.6 or 16.8% of revenue in the prior quarter. SG&A expenses were 6.3 million or 16% of revenue in fiscal Q1 as compared to 5.9 million or 17.8% of revenue in the prior quarter primarily due to modest increases and headcount driven primarily by our sales and marketing activities.

Annual period-over-period increases in absolute dollar OpEx spends in the current versus prior year period are one for R&D, primarily engineering headcount driven and the results of the company addressing substantial leverage available within the Nasiri-Fabrication platform to drive further integration and innovation in motion tracking and the consumer electronic market.

Two, additions to SG&A are primarily sales and headcount driven to address the company’s substantial global customer opportunity including sales channels and geographies like China for adoption of motion tracking solutions like major consumer electronic customers represent a significant opportunity for the company and three, public company cost and SG&A.

Stock based compensation is included in the June quarter for fiscal Q1 and was $1.7 million in total versus 1.2 million in the prior quarter and 0.8 million for Q1 fiscal 2012.

Operating margins were 25% this quarter versus 21% in the prior quarter, our long term operating margin target is 30% to 34% of a quarterly primarily based on sales seasonality. Considering Q1 seasonality, we expect to be inline with our target operating model for our fiscal year 2013.

Our income tax provision was 21% of income before tax for fiscal Q1 of 2013. Net income for the first quarter of fiscal 2013 was $7.7 million compared with net income of 5.9 million in the fourth quarter of fiscal 2012, an increase of 30%.

Fully diluted GAAP EPS was $0.09 per share for Q1 fiscal 2013 based on fully diluted shares of $87.1 million. Coming to the balance sheet, cash issues (ph) and operations for the first quarter of fiscal year 2013 was 1.1 million primarily for working capital for inventory and accounts receivable. The increase in accounts receivable reflect that the impact of Q1 shipment timing due to such factors as increasing demand for new products, timing of availability of the new product and timing of customer purchases of newer products in the quarter.

Increased inventory levels are anticipation of accelerating demand in Q2 fiscal 2013. As a result our net sales outstanding were 53 days up from 33 days in the prior quarter. As of the end of Q1 2013 our total inventories stood at 20 million versus 12 million at the end of the prior quarter primarily again driven by the expected increase in customer demand and seasonally higher revenues in the fiscal second quarter. With these remarks I will turn the call back to Steve Nasiri.

Steve Nasiri

Thanks Alan. Now I would like to comment on some of the business highlights for the last quarter. First a quick overview of some of our key important announcements, we set a new industry benchmark with the introduction of the world’s smallest six-axis integrated motion tracking device. This is a company’s latest generation integrated six-axis device that has both six-axis gyroscope and six-axis accelerometer integrated on the same die in a very small form factor of 3 by 3 by 0.9 millimeter QFN package.

We are presenting a reduction of 45% in package dies and nearly 60% in power consumption as compared to our nearest competitor. While at the same time we achieve over 25% in die size reduction.

It is a perfect example of how we are addressing the market need for lower cost solution through innovation without compromising performance and reliability. We are seeing very favorable responses but all of our key current and new customers where they are actively designing this product into the next generation product.

They have been the technology leader in our state (ph) and we continue to raise the bar and extend our technology lead. Thanks and last part to our ability to integrate functionalities. We believe comparative delusions continue to struggle to match the pace of our innovation and the quality and delivery time that we are able to provide. We also continue to defend and grow our position in market as compared to sales frequently in their attempt to become second source to us even with pin to pin compatibles devices for our older generation of products.

We are expiating on a strong customer focused product road map that we believe will continue to raise the mark, and increase the gap between our competitors. We believe our application platform will continue to allow us to deliver more highly integrated motion interface solution as compared to comparative solutions and fabrication processes.

Thanks to our patented and fabrication platform we are able to reduce dies costs and power consumption while improving the liability and performance. Single package multi-chip solutions used by many of our competitors add to the cost and reduce the liability of a product and are incapable of delivering performance improvements at our pace.

We expanded into industrial markets with the world’s first high performance integrated 3 axis gyroscope product. This breakthrough product delivers significant reduction in noise, size and price as compared to all other existing industrial gyroscope providers.

The industrial market has presented a significant opportunity for us to deliver product that we expect will contribute to revenue and margins in the next fiscal year. As we mentioned during our last call, we held our first annual motion interface developer conference in San Francisco in June to a sold out product overhanded 50 SMBs (ph) exceeding our initial expectation.

Our conference aimed at bringing together developers, platform provider’s ecosystem partners and market analyst to address the real market needs of mobile devices held gaming, wearable and many other emerging application.

We also made an announcement about our NF-Shuttle program. We had a successful second large of NF-Shuttle platform and are aiming this program to provide the fabless MEMS industry with an alternative means of developing their new products.

Also the NF-Shuttle allows investments to have many potential new opportunities for technology cooperation and licensing activities with its participants. I would also like to make a quick point about our advanced technology development scheme where the NF-Shuttle activities reside. As we had mentioned in the past we are committed to leveraging our unique platform to develop other MEMS products that are different from motion interface.

We are continuing to make progress on this front. With the addition of our new Vice President of Advanced Technology we are now making strong push to bring other game changing main products to the market. In Q1, we also announced our response to the SD Micro IP Litigation and we initiated our own counterclaim against this ST for infringing on two of our patents. At this time we have not experienced any business or customer impact due to this law suit.

For this fiscal year much of the legal expenses associated with the litigation have been budgeted in our existing financial outlook and we do not expect any significant near term change for existing outlook from this matter. In the last quarter we expanded our executive staff by adding several chief executive that will help the company continue on a high growth path.

As we stated in our Form 8K filing, we have replaced our retiring Vice President of Operation. In addition, we have also added two new Vice President to the team for the position of marketing and advanced technology. As we have discussed previously we have increased our total production capacity by installing fuel source capabilities. We are pleased to say that we have made excellent progress; we have started to make commercial product shipments from our second foundry and now have access to sell capacity of over 300 million going to 600 million unit per year depending on the product type and stock size.

Our current and future customers seems to be very satisfied with our operations and supply chain capabilities. We now have dual source foundry and assembly capability along with geographical diversification of our suppliers, so we are able to provide continuity of supply assurance at a level which is not common in our industry. I will now turn to Alan to provide additional details for our September quarter financial outlook.

Alan Krock

Thank you Steve. Now to conclude I will provide our financial outlook for the second quarter of our fiscal 2013. As you have heard from us before our end markets have been seasonal in the past and particularly the gaming markets. As such our fiscal Q2 ending September and fiscal Q3 ending December are generally strongest revenue quarter. We expect Q2 target revenue in a range to be $53 million to $57 million.

As was the case in fiscal Q1 and fiscal Q2 component shortages related to the 28 nanometer technology continued to limit our customer’s volume outlook for their products. However we believe that our revenue outlook of $53 million to $57 million takes into account our customers understanding of current levels of components availability.

We understand and expect that such current component constraints will ease as we progress through the remainder of calendar 2012. To support this Q2 fiscal ’13 revenue outlook, we currently have in backlog in place which is a majority of the current quarter revenue target.

In Q2, we expect our gross margin to continue to stay within our long term model in the mid-50% point range. In Q2 we expect operating expenses of approximately $12 million made up of $5.8 million for R&D and $6.2 million for SG&A. We therefore expect the current quarter operating margins in the low 30 percentage point range.

We expect a fully diluted share count of approximately 88 million shares and therefore GAAP basis earnings per share of approximately $0.15. As before for fiscal 2013 in total we expect our margins and operating expenses to stay within our long term model of gross margins in the mid-50 percentage points, R&D expense of 11% to 13% of sales and SG&A expense of 10% - 12% sales.

We expect operating margins of low 30 percentage point range of sale. We expect a tax rate of 22% to 23% as a result we expect net income after tax percentage of approximately 25%. With that I would like to turn the call over to the question and answer session. Operator?

Question-and-Answer Session

Operator

(Operator Instructions). And your first question will come from the line of Tristan Gerra with Robert Baird. Please proceed.

Nick Clare - Robert Baird

Hey guys this is Nick Clare calling in for Tristan. So first I guess what’s the key catalyst for the quite strong September quarter rough guidance?

Alan Krock

So there is just a number of new platforms going into production in the smartphone and tablet phase plus, there is the normal seasonal improvements in the gaming related business so across all segments.

Nick Clare - Robert Baird

Okay and then could you kind of provide a second half outlook in terms of the gaming market and are you still given your more visibility in your upcoming Nintendo console and…

Alan Krock

In the prior quarter we established a target for gaming to be about in the low 20 percentage points, 21% of total sales for the fiscal year and as Steve said in this script that continues to trend along what we have originally forecast. So we have no changes but no relative to what was said in the prior quarter call on our opportunity in those market.

Nick Clare - Robert Baird

Okay and do you expect that device to utilize a six-axis gyro then?

Alan Krock

Currently all the majority of the product is not substantially all the products that we will sell into the gaming market no matter who the OEM is, it's related to 3-axis gyro because that’s been the historic design, the customers got, the way the customers use its technology. Looking forward in the future we expect that all gaming platforms would be candidates for our six-axis product, products that are not yet announced, I think that we can talk to on the call but we expect in general in the future the gaming segment could do well with six-axis product.

Nick Clare - Robert Baird

Okay and then you said that the gaming has not really changed since your prior target was given, for the other end markets, for tablets, smartphone has any of that changed or the percentage targets kind of for the year still on track with what was previously said.

Alan Krock

The targets are on track what was previously said, he gave a couple examples of new platform in one of each the Galaxy S3 LTE and the Google Nexus 7 tablet both of which are in the market and an element of our outlook for the next fiscal quarter.

So it's largely inline, everything percentage wise is largely inline with what was originally projected.

Operator

Our next question will come from the line of James Schneider with Goldman Sachs.

Mark Delaney - Goldman Sachs

It's Mark Delaney calling in on behalf of Jim Schneider, appreciate you guys taking the question and congratulations on a very good results. I was hoping if you could talk a little bit the full year expectations, are you still looking for 40% to 50% growth for the fiscal year and then be if still how much visibility do you have now on the second half given the macro, I am sorry it's increased in the recent weeks.

Alan Krock

Generally we don’t, we give our outlook at the beginning of the year, we provide updates relative to outlook for the next 90 days and we don’t have any real substantial basis to change the outlook is given in the past.

So while we are definitely aware there are investors and others have consider concerns around macro-economic conditions and overall growth rates and various geographies of smartphones and tablets, we really are and going to be updating our annualized outlook on a quarterly basis generally believe that our current quarter which we have the best visibility and to clearly because of backlog is roughly inline with where people expect us to be if not given some of those events recently slightly ahead of where people might have it.

So generally that’s the incremental update we have got based on real customer orders and that’s about all we are going to comment on currently.

Mark Delaney - Goldman Sachs

And secondly, you mentioned, you can factor in the 28 nanometer constraints now but it's still limiting you somewhat, do you have an estimate of what your revenue would be next quarter if there were no 28 nanometer constraints.

Alan Krock

We have guessed that the impact both the prior quarter and the current quarter needed to start own internal estimates probably in the $3 million to $4 million range.

Mark Delaney - Goldman Sachs

Each quarter?

Alan Krock

Correct.

Mark Delaney - Goldman Sachs

Okay and then just lastly I know you mentioned a little bit in the prepared remarks about the expectations for six-axis I think you said it was up over 100% next quarter, could you provide us a little bit of clarity kind of where your mix is between 3 and six-axis right now and then how well the initial penetration is going with the 9-axis products.

Steve Nasiri

The mix is, we have started shipping reasonable tight volumes last quarter our Q1. We have been shipping in prior quarters as well, we expect in this quarter we will be approaching 50% of the volume with the six-axis and then on the 9-axis we are having several design wins with certain smartphone makers in Japan. We don’t expect the 9-axis the current 9-axis to be strong design win; we have potential the next generation that will be more suited for this tensed market.

We are seeing a strong traction of 9-axis in other market like variable sensors.

Operator

Your next question will come from the line of Richard Shannon with Craig-Hallum.

Richard Shannon - Craig-Hallum

I guess just a couple of them; I guess these are for you Alan, on the overall pricing environment. I would love to understand how things are progressing there. I think Steve made some comments about some aggressiveness in the 3-axis side that was pin compatible parts and where you may be seeing incrementally more complication out there in the last quarter.

Steve Nasiri

Well I think the comment around the pin compatible was around the fact that our competition has challenges in catching up with the liability and performance of our product and as such they were not able to get in. We don’t see the pin computability being a factor here, so the pricing the way we look at the pricing there is two factor there are a pricing levels that require for the faster penetration of the motion interface in all the smartphones from high end to mid-range and even to the lower range. So we are constantly driving the innovation to provide lower cost solution.

The second factor is of course around the comparativeness of winning a certain platform and going head to head against our competitors on pricing. We feel comfortable in both side of the battle. We keep bringing in next generation innovation that is sort of it changes the equation for us in our favor while providing the smaller size, the better performance and inherent to lower cost.

So we are able to meet primarily the market needs for overall dilution cost as well as ability to compete against our competitors on a just head to head cost. So that’s how we see it as we can see from our margin for the past number of quarters dynamics have not changed and we are still been able to provide a guidance and our financial model.

Richard Shannon - Craig-Hallum

Second question from me I think you mentioned that your exposure to China from a revenue point of view was still pretty strong a little bit above 10% and I think your prepared comment suggested a design activity looks pretty good, can you give us a sense if you expect that customer base to be rolling out solutions with gyros in the near term or do you see any push-outs and I will go to the extent to which you see inter-set the more the midlevel price point range as opposed to the high end or gyros have seen interest thus far.

Steve Nasiri

For us we understand some of the dynamics of China outlooks has a total GDP, we don’t see that as a factor we are basically playing into a attach rate here as compared to the total number of unit China produces is very incremental number and some of the leading Chinese handset makers are anticipating in high end smartphone primarily for export and majority of those smartphone are although at the lower cost of competing head to head against the high end of the smartphone and as such they perhaps gyros as part of the check the box functionalities and that’s the market we are addressing so for us is an upside, attach rate and we are having a very strong market share in China.

Richard Shannon - Craig-Hallum

Great maybe just one last question and I will follow-up on one of the previous responses in terms of six-axis success, did I catch your comments, or you expect to see the six-axis solution greater in 50% of your revenues in the September quarters is that what I heard?

Steve Nasiri

We are starting to approach to that number correct?

Richard Shannon - Craig-Hallum

Approach the number.

Steve Nasiri

It's a significant and that number is constantly increasing very rapidly quarter-over-quarter.

Richard Shannon - Craig-Hallum

Okay so we could see that by the December quarter actually see that cross over there.

Steve Nasiri

Yes.

Richard Shannon - Craig-Hallum

Okay in that comment I think you used the word volume, is that on a point or a sales basis?

Steve Nasiri

We are talking in unit as well as sales, so in unit is approaching 50% and the revenue is probably going to be already exceeding.

Operator

Your next question will come from the line of Gus Richard with Piper Jaffray.

Gus Richard - Piper Jaffray

Yes thanks for taking the question, in terms of our (inaudible) platforms from some of the application processor companies, how have you done in terms of market share or penetration; can you give any color there?

Steve Nasiri

Well basically that’s one of our strengths, to our knowledge we believe we have almost 100% participation in all of the reference (ph) design and many of which are only reference design. We are in all the leading reference designs in U.S. as well as in China. But also China is what primarily driving strong market share in China.

Alan Krock

I will just go ahead and highlight some of the partners where the reference design with the app process exist, Volcom, NVIDIA (ph) Intel, Broadcom, Marvell, China specific Volcom (inaudible), Intel, Broadcom, Marvell, Spreadtrum, (inaudible) Samsung.

So there is a lot, it's a very solid list of company with that use our products and their reference design. Many of them or the exclusive gyro and if not all.

Gus Richard - Piper Jaffray

Got it and then and so you know basically as 28 nanometer becomes available and these application processors, I would assume you would carried along with those. Can you talk a little bit about what customers have decided to do in this quarter and maybe in their early next quarter when there is a shortage of parts so they just are delaying a new product launch or are they extending the capability of existing platforms? Can you talk a little bit about how customers are reacting to our charges (ph)?

Steve Nasiri

Well keep in mind that the only shortage of product tied in 28 nanometer that has been material has to us has been only from one company. The rest of app processors and reference design to our knowledge, I mean I don’t have those information right in front of me that 28 nanometers would not constraint by the shortages that have any impact to us.

So we are not ever any other app providers having similar challenges of which hasn’t impacted us. So some of our customers who are impacted by this shortages have been able to diversify the new generations to other platforms and have basically or extended their life of their existing platform.

So, to that extent that had to overcome and we have been winning designs in some of those new platforms that is helping us as well.

Gus Richard - Piper Jaffray

Got it and then the last one for me is just do you have any update on the optical imagine stability product, have you made any traction in terms of giving in to either smart phones or digital still cameras.

Steve Nasiri

Yes we provided in Africa-Jamaica, already that we see that as a strong activity with potential for high growth opportunity in the second half. We have provided the product specific announcement and we are going aggressively after many existing digital camera market in particular in Taiwan where the designing cycles can be little more accelerated.

I am expecting to see some material revenues in the second half and then in the camera and optical images civilization for camera modules. We are the primary gyro of choice for those applications and we are basically and every camera module reference design in every geographic area maybe as many as six to seven of them.

So we feel very good, we don’t have any specific visibility of that particular market ramping. We see loss of activity, there are talks about some 8 megapixel there are talks about 13 megapixel. I think this is a market that is ready to take up, we are aware of several handset makers at least in intending to bring product offering in the Q1 of next year. We expect opportunities in that segment and we are staying very close to it.

Operator

(Operator Instructions). Your next question will come from the line of Krishna Shankar with Roth Capital.

Krishna Shankar - Roth Capital

Regarding the Samsung Galaxy S3, are you folks, are you sort of the exclusive provider of the motion processing solution there or did they use multiple sources for the Galaxy S3.

Steve Nasiri

No we don’t have any exclusive arrangement but that said there is not that many options either, so you can always assume the quite exclusive basically bought one of our mid-primary competitors. So there is no exclusive relationship on any of these accounts.

Alan Krock

To help particularly with that platform that’s the platform where the LTE version is split and from the HSPA+ version and LTE version is and the HSPA+ version is SC (ph), so SC serves the HSPA+ with their two chip and package six-axis product and it's a great example of our one of six-axis integrated wins and believe that’s going very well from (inaudible) relative technique comparison was the other half of the platform. So that one instance to customer split the platform between the two competitors which is a big improvement in market share for InvenSense because that too was the 100% ST so they actually loss the North America LTE center fees (ph) to us this quarter.

Krishna Shankar - Roth Capital

That’s terrific and my follow-up question on the China market, do you feel that the opportunity is more in the mass market smartphone or is it more in the sort of leading a smartphone they are bringing to market at aggressive prices?

Steve Nasiri

Well we see it in both, I mean we find Chinese handset makers in particular while whereas LTE being both sophisticated and aggressive. So they are providing the gyro into their high end for export but also aggressively interested in the motion interface solution for differentiating functionalities in the domestic market. So we see opportunities everywhere, we are already on a number of reference design. I think one of the name that also should have be read off is the media take Mediatek reference design which is very core to the China market.

We are on that reference design as well. So it is we see the China market continuing to be great opportunity, one of the key advantages of InvenSense over others is our total solution wherein that end up market full support and full solution is really key and we have the most mature and most capability to support our customers with a fully integration especially around Android where we have the majority of experience. Our competitors are not necessarily very experienced in that area based on their customer base. So that works very well for us.

Operator

And there are no further questions in the queue. I would now like to turn the call back over to management for closing comments.

Alan Krock

I would like to thank all of the participations in the call for joining us this afternoon and we look forward to our next hosted call which will follow the completion of our fiscal Q2. Thank you and have a good afternoon.

Operator

Thank you all for your participation in today’s conference. This concludes the presentation. You may now disconnect. Have a wonderful day.

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